CIC converts $3.6m loan to Ugandan unit into equity
CIC Group now hold a 95 percent stake in CIC Africa Uganda. Photo / Courtesy
What you need to know:
- The transaction, in essence, will see CIC Group increase the share of its investments in the Ugandan subsidiary from 93 percent to 95 percent
Kenyan insurance and investment firms, CIC Group has said it has converted a loan of Shs13.5b ($3.6m) to its subsidiary in Uganda into equity.
The transaction, in essence, will see CIC Group increase the share of its investments in the Ugandan subsidiary from 93 percent to 95 percent.
Details contained in the CIC annual report for the period ended December 2022, indicate that CIC Africa Uganda recovered from a loss of Shs530.4m to post a profit of Shs1.9b, which supported the conversion of the loan to equity.
“During the year, the company converted its loan to CIC Africa (Uganda) into ordinary share capital of the subsidiary in the retirement of debt with the subsidiary . … This resulted in an increase in interest in the subsidiary from 93 percent to 95 percent,” said CIC Group in a statement.
Entered Uganda
CIC Group entered Uganda in 2014 through a partnership with Uganda Co-operative Savings and Credit Union and Uganda Co-operative Alliance.
The Group owns 69 percent of CIC Africa Insurance (South Sudan) and 91 percent of CIC Africa Co-operatives Insurance (Malawi).
CIC Group also fully owns CIC Asset Management, CIC General Insurance, and CIC Life Assurance, which are all based in Kenya.
During the period ended December, the Group reported an increase in total assets from Shs1.13 trillion in 2021 to Shs1.3 trillion, largely due to an ambitious expansion plan in the across Africa.
The company reported deposit under administration of Sh30.1b but noted a failure by its CIC Life Uganda subsidiary to meet the Insurance Regulatory Authority’s minimum capital requirement.
